The IFC Capitalization Fund, a global equity and subordinated-debt fund founded by the International Finance Corporation (IFC) and the Japan Bank for International Cooperation, recently issued a subordinated loan in the amount of USD 40 million to ACLEDA Bank Plc, a retail bank based in Cambodia, to augment the bank’s financing of micro, small and medium-sized enterprises.
ACLEDA Bank CEO In. Channy noted that, “IFC’s subordinated debt will support ACLEDA’s continued efforts to offer financing to small and medium enterprises that are the backbone of the Cambodian economy. It will also enhance our ability to mobilize additional long-term funding from private investors in order to support ACLEDA Cambodia’s growth plan domestically and in neighboring countries.”
Since 2000, IFC has held a 12.25-percent stake in ACLEDA Bank. IFC is an equity investor in ACLEDA Bank Laos, a subsidiary of ACLEDA Bank Plc that operates in Laos.
According to the US-based nonprofit Microfinance Information Exchange (MIX), ACLEDA reported total assets of USD 1.5 billion, a gross loan portfolio USD 1 billion, 272,300 active borrowers, deposits of USD 1.1 billion, 821,900 depositors, return on assets (ROA) of 3.73 percent, and return on equity (ROE) of 32.03 percent as of 2011. In addition to Cambodia, ACLEDA also operates in Laos and recently expanded operations to Myanmar.
By Chioma Okwudiafor, Research Associate
About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a member of the US-based World Bank Group, offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.
About IFC Asset Management Company
IFC Asset Management Company LLC is a wholly owned subsidiary of International Finance Corporation. It has USD 4.5 billion of assets under management including the USD 3 billion IFC Capitalization Fund, the USD 1 billion IFC African, Latin American, and Caribbean Fund and the USD182 million Africa Capitalization Fund.
About Japan Bank for International Cooperation
Japan Bank for International Cooperation (JBIC) is a policy-based financial institution wholly owned by the Japanese government. JBIC has the purpose of contributing to the sound development of Japan and the international economy and society, by taking responsibility for the financial function to promote the overseas development and securing resources which are important for Japan, to maintain and improve the international competitiveness of Japanese industries and to promote the overseas business having the purpose of preserving the global environment, while having the objective of supplementing the financial transactions implemented by ordinary financial institutions. JBIC also provides the financial services that are necessary to prevent disruptions to international financial order or to take appropriate measures with respect to damages caused by such disruption.
About ACLEDA Bank PLC
ACLEDA Bank is a public limited company based in Cambodia. It was originally founded in January 1993 as The Association of Cambodian Local Economic Development Agencies (ACLEDA), a non-governmental organization aiming to raise the standards of living of poor people by promoting economic activities ranging from self-employment to medium-sized business. It was licensed by the National Bank of Cambodia as a specialized bank in October 2000 and as a commercial bank in December 2003, when it was renamed ACLEDA Bank. It provides a range of banking services including deposits, loans, cash management and trade services. ACLEDA also operates subsidiaries in Laos and Myanmar. According to the US-based nonprofit Microfinance Information Exchange (MIX), ACLEDA reported total assets of USD 1.5 billion, a gross loan portfolio USD 1 billion, 272,300 active borrowers, deposits of USD 1.1 billion, 821,900 depositors, return on assets (ROA) of 3.73 percent, and return on equity (ROE) of 32.03 percent as of December 2011.
Sources and Additional Resources:
IFC Press Release: “IFC Capitalization Fund Invests in ACLEDA Bank to Support Growth, Access to Finance in Cambodia”
http://www.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/6F5461910104015485257ADA006286BE
MicroCapital Story: December 7, 2012, MICROCAPITAL BRIEF: ACLEDA Bank of Cambodia to Launch Microfinance Operations in Myanmar in January 2013https://www.microcapital.org/microcapital-brief-acleda-bank-of-cambodia-to-launch-microfinance-operations-in-myanmar-in-january-2013/
MicroCapital Story: January 18, 2012 “MICROCAPITAL BRIEF: responsAbility Lends $4m to ACLEDA Bank, Hattha Kaksekar Limited (HKL) of Cambodia”
https://www.microcapital.org/microcapital-brief-responsability-lends-4m-to-acleda-bank-hattha-kaksekar-limited-hkl-of-cambodia/
MicroCapital Universe Profile: ACLEDA Bank PLC
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=ACLEDA+Bank
MicroCapital Universe Profile: IFC Capitalization Fund
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=IFC+Capitalization+Fund
MicroCapital Universe Profile: International Finance Corporation
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital Universe Profile: IFC Asset Management Company
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=IFC+Asset+Management+Company
MicroCapital Universe Profile: Japan Bank for International Cooperation
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=Japan+Bank+for+International+Cooperation+
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